In my first article, I was talking about the idea of limited liability, and why you can't necessarily expect a full refund of your shipment's value, if it is lost or damaged in transit.
As I said, the forwarder's liability to compensate the goods' owner is limited by various statutes and conventions. In the United Kingdom, a forwarder also relies on Standard Trading Conditions to formalise his relationship with the shipper or importer who is using his services.
It is really important that companies using freight forwarding services have some concept of what this means, because Standard Trading Conditions - while they do limit the liability of the carrier - also offer some protection to the customer.
In brief the BIFA Conditions - which are published under the authority of the British International Freight Association - outline the different responsibilities of the carrier and their customer. A simple example of this is that the customer is responsible for making sure that the goods are properly 'prepared, packed, stowed, labelled and/or marked', and the carrier is responsible for completing the contract of carriage using any appropriate method or route.
There are three main ways in which the Conditions protect the customer:
1. They can only be used by forwarders who are members of the British International Freight Association, which promotes standards of good practice in the forwarding industry. If a customer thinks that a forwarder has acted improperly, a complaint can be made to BIFA's Disciplinary Committee.
2. Clause 23 of the Conditions require the forwarder to 'perform its duties with a reasonable degree of car, diligence, skill and judgement.'
3. Providing their claim is proven, the customer is entitled to compensation based on the weight of the goods damaged or lost.
The BIFA Standard Trading Conditions are well-tested in the courts and there is a body of case law based upon them. As a shipper or importer, you might find it a good idea to skim through the Conditions, so that you have some idea of their content. If the forwarder intends to rely on them, he must make them available for you to look at. Most forwarders have published them on their website, if not you can always get them from BIFA.org.
Stephen Willis
Managing Director
http://www.rwfreight.co.uk
R W Freight Services Ltd is a UK based family owned and run freight forwarder established in 1971 operating worldwide forwarding services. ISO accredited Quality Management system. BIFA Registration No 1.
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